Q2 26 EPS Adjusted
$0.44
BEAT +26.33%
Est. $0.35
Non-GAAP EPS excludes $19.8 million stock-based compensation, $4.3 million amortization of acquired intangibles, $1.1 million amortization of debt issuance costs, $98 thousand acquisition-related expenses, and $1.7 million restructuring expense
Q2 26 Revenue
$210.9M
BEAT +1.27%
Est. $208.2M
vs S&P Since Q2 26
+5.9%
BEATING MARKET
RPD +6.2% vs S&P +0.3%
Market Reaction
Did RPD Beat Earnings? Q2 2026 Results
Rapid7 delivered a stronger-than-expected second quarter, with new CEO Wael Mohamed's AI-focused platform strategy beginning to show up in the bottom line even as the business navigates a deliberate contraction. The cybersecurity firm posted adjusted… Read more Rapid7 delivered a stronger-than-expected second quarter, with new CEO Wael Mohamed's AI-focused platform strategy beginning to show up in the bottom line even as the business navigates a deliberate contraction. The cybersecurity firm posted adjusted non-GAAP EPS of $0.44 for Q2 2026, clearing the $0.35 consensus estimate by 26.33% and extending its streak of beating EPS expectations to four consecutive quarters. Revenue of $210.88 million edged past the $208.25 million consensus by 1.27%, though it still declined 1.6% year-over-year, reflecting ongoing headwinds in customer retention and expansion that also weighed on ARR, which fell 2.0% to $824.00 million. The beat came despite a restructuring that trimmed roughly 12% of the workforce and compressed non-GAAP operating income to $28.89 million from $36.35 million a year ago. Looking ahead, Rapid7 guided Q3 revenue to $208.00 to $210.00 million and full-year 2026 revenue to $837.00 to $841.00 million, projecting free cash flow of approximately $130.00 million as Mohamed sharpens the company's focus on Detection and Response and Exposure Management.
Key Takeaways
- • ARR decline of 2.0% year-over-year to $824 million
- • Product subscriptions revenue decline of 1.5% year-over-year
- • Non-GAAP gross margin compression from 74% to 72% year-over-year
- • Restructuring plan to align resources with Core Platform Solutions
RPD Forward Guidance & Outlook
For Q3 2026, Rapid7 expects ARR of approximately $812 million (down ~3% YoY), revenue of $208-$210 million (down 4-5% YoY), non-GAAP operating income of $34-$36 million, and non-GAAP diluted EPS of $0.44-$0.47 on approximately 80.1 million weighted average diluted shares. For full-year 2026, the company guides revenue of $837-$841 million (down 2-3% YoY), non-GAAP operating income of $129-$133 million, non-GAAP diluted EPS of $1.78-$1.83 on approximately 79.4 million weighted average diluted shares, and free cash flow of approximately $130 million. The company expects restructuring charges of approximately $10-$11 million to be substantially paid during Q3 and Q4 2026.
RPD YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
RPD Revenue by Segment
With YoY comparisons, source: SEC Filings
RPD Revenue by Geography
With YoY comparisons, source: SEC Filings
“Rapid7 is a good company ready to be great, but getting there requires clear choices, strong execution, and the discipline to focus on what matters most. Since stepping into this role, I've been listening closely to our customers, our people, and our partners, and the message is consistent: they want us to go deeper in Detection and Response and Exposure Management, not wider. The steps we're taking align our resources and investment behind our core platform and the AI foundation that connects it, giving us more capacity to invest, innovate, and serve our customers well.”
— Wael Mohamed, Q2 2026 Earnings Press Release
RPD Earnings Trends
RPD vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
RPD EPS Trend
Earnings per share: estimate vs actual
RPD Revenue Trend
Quarterly revenue: estimate vs actual
RPD Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT Non-GAAP EPS excludes $19.8 million stock-based compensation, $4.3 million amortization of acquired intangibles, $1.1 million amortization of debt issuance costs, $98 thousand acquisition-related expenses, and $1.7 million restructuring expense | $0.35 | $0.44 | +26.33% | $210.9M | +1.27% |
| Q1 26 BEAT | $0.30 | $0.36 | +18.77% | $209.7M | +0.86% |
| Q4 25 BEAT FY | $0.42 | $0.44 | +5.87% | $217.4M | +1.03% |
| FY Full Year | — | $2.08 | — | $859.8M | — |
| Q3 25 BEAT | $0.46 | $0.57 | +24.89% | $218.0M | +0.84% |
| Q2 25 BEAT | $0.44 | $0.58 | +30.84% | $214.2M | +1.01% |